Braveheart Investment Group has agreed to help increase business angel activity in the north east of England.

The Perth company will work alongside North East Access to Finance to help small and medium enterprises attract funding.

Viking Fund Managers, a subsidiary of Braveheart, has been appointed to replicate the model it uses in Yorkshire.

There it works alongside the Yorkshire Association of Business Angels and runs a £4 million co-investment fund with interests in dozens of businesses.

Geoffrey Thomson, chief executive of Braveheart, said: "Business angel investment is rightly gaining recognition and acceptance for its role in generating employment and wealth.

"This helps explain two major Government initiatives that will advance business angel investing considerably - the 50 per cent increase in Enterprise Investment Scheme income tax relief contained in the Budget, and the announcement in April of the s50 million Business Angel Co-Investment Fund."